Collateral Is ________ the Lender Receives If the Borrower Does

question 113

Multiple Choice

Collateral is ________ the lender receives if the borrower does not pay back the loan.

• A)a liability
• B)an asset
• C)a present
• D)an offering

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Definitions:

Contract Period

The duration over which a contract is active, specifying the start and end dates of the agreement.

Franchise Fee Accounting

The process of recognizing and managing the fees paid and received for the right to use a franchisor’s trademark and operational model in accounting books.

Initial Franchise Fee

The fee paid by a franchisee to the franchisor at the beginning of the franchise agreement for the right to use the franchisor's brand, system, and support.

Revenue

The cumulative revenue obtained from selling goods or services integral to a business's core functions.